Image credits: Gobierno de México
/
Weekly Roundups

Gas Bienestar Starts Operating in Mexico City

By Paloma Duran | Thu, 09/02/2021 - 14:18

The state company Gas Bienestar started its first operations in Iztapalapa, Mexico City, where used LP gas cylinders are being collected and exchanged for new 20 and 30 kg cylinders to rehabilitate them and eliminate risks, said Octavio Romero, Director of PEMEX.

Romero said the company will have a presence in Azcapotzalco, Gustavo A. Madero, Milpa Alta, Xochimilco and Tláhuac. The plan for the medium-term is to operate in the rest of Mexico City, where six sales and filling terminals will be installed.

PEMEX´s New Refinery Has Lost US$360 Million in 2021

The Deer Park refinery that PEMEX agreed to buy accumulated a net loss of US$360 million in 2021. The refinery was hit in February by the Texas freeze that led to the suspension of activities, causing losses in July. Additionally, Deer Park has struggled with market volatility and its debt has risen to more than US$1 billion in recent months. According to experts, Deer Park's net loss shows that the Mexican government's strategy to reduce the country's dependence on foreign energy has increased financial pressure on PEMEX, which now has a debt that exceeds US$115 billion.

PEMEX Deadly Fire May Have Been Caused by a Gas Leak

Last weekend’s deadly fire at a PEMEX offshore platform in the Gulf of Mexico may have been caused by a gas leak, said Octavio Romero, Chief Executive Officer, on Wednesday. "This is preliminary information because they are doing the analysis to know in detail what happened, nevertheless, it is presumed that there was a gas leak at the time that maintenance work was being carried out on this platform," he commented, in an interview with journalist Carmen Aristegui. The explosion at the KMZ’s E-Ku-A2 processing platform is responsible for the death of five workers, six injured, and two missing according to the latest accounts. Romero said DNA tests were being conducted on two scorched bodies with the help of samples from relatives to identify the remains

KMZ Complex Production Fully Restored

PEMEX announced that it has resumed production at 125 wells at its Ku-Maloob-Zaap complex, after having to suspend production due to a rig fire on Aug. 22. The shutdown significantly affected PEMEX as it prevented the production of 1.6 million barrels. However, it did not affect the company’s exports. Authorities said that despite the accident, PEMEX will reach its production goal of 1.8 million b /d by the end of 2021.

Crude Oil Prices Rise as Hurricane Makes its Way into the Gulf

US-based oil companies have started to evacuate workers and vessels from the Gulf of Mexico, as tropical storm Ida makes its way into the area, causing crude oil prices to rise considerably following a bad week due to a fire at one of PEMEX´s platforms.

Oil prices have benefited from the expected halt in operations, anticipating disruptions in production, and taken an upward trajectory: Brent crude went up 1.4 percent, or a US$1.02 gain, while West Texas Intermediate (WTI) climbed 1.6 percent, or a US$1.09 gain. Brent is looking good for a 10 percent weekly gain, its best since June 2020, while WTI stands at 9 percent, its best since September 2020.

The data used in this article was sourced from:  
MBN, Bloomberg, López Obrador,
Photo by:   Gobierno de México
Paloma Duran Paloma Duran Junior Journalist and Industry Analyst